Vident Core U.S. Equity Fund (VUSE)

Overview

The Vident Core U.S. Equity Fund (VUSE) is an actively managed ETF that seeks long-term capital appreciation by investing in a diversified portfolio of U.S. equities. It focuses on companies exhibiting strong fundamental characteristics and social responsibility.

Reputation and Reliability

Vident Investment Advisory is a smaller firm compared to industry giants, but known for its values-based investing approach and commitment to social responsibility. They have a shorter track record compared to established issuers.

Management Expertise

Vident's management team has experience in active equity management and values-based investing. Their expertise lies in identifying companies aligning with specific social and governance criteria.

Goal

To achieve long-term capital appreciation through investments in U.S. equities.

Investment Approach and Strategy

Strategy: The fund is actively managed and does not track a specific index. It uses a proprietary, rules-based methodology to select companies that meet certain financial and social responsibility criteria.

Composition The ETF holds a diversified portfolio of U.S. equities across various sectors. The composition reflects Vident's selection process based on financial metrics and social/governance factors.

Market Share: VUSE holds a very small market share within the broad U.S. equity ETF market.

Total Net Assets (AUM): 108300000

Key Competitors

• SPDR S&P 500 ETF Trust (SPY)
• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)

Competitive Landscape

The ETF market is highly competitive with dominant players like BlackRock (iShares), Vanguard, and State Street (SPDR). VUSE differentiates itself with its active management style and focus on values-based investing. Its smaller size and unique investment strategy are both advantages and disadvantages when compared to low-cost, passively managed ETFs.

Historical Performance: Historical performance data is required, but omitted due to restriction to JSON format only. Real-time market data must be obtained separately.

Benchmark Comparison: A benchmark comparison is needed to gauge the effectiveness. The return of the S&P 500 over similar time periods is a suitable benchmark.

Expense Ratio: 0.49

Average Trading Volume

The ETF's average trading volume is moderate, reflecting its smaller asset base compared to larger, more liquid ETFs.

Bid-Ask Spread

The bid-ask spread for VUSE is generally higher than that of more liquid, passively managed ETFs due to its lower trading volume.

Market Environment Factors

Economic indicators, sector growth, and market conditions influence the performance of VUSE's holdings. Socially responsible investing trends also play a role.

Growth Trajectory

The ETF's growth trajectory depends on its ability to attract investors interested in values-based investing and the performance of its actively managed portfolio.

Competitive Edge

VUSE's competitive edge lies in its actively managed, values-based investing approach, which appeals to socially conscious investors. Its rules-based methodology for selecting companies based on financial and social responsibility metrics provides a unique investment offering. The ETF seeks to outperform traditional benchmarks by focusing on companies with strong fundamentals and commitment to ESG principles, potentially attracting a specific niche of investors.

Volatility

VUSE's volatility can vary depending on market conditions and the specific holdings within the portfolio. Active management may lead to higher volatility than passive index trackers.

Market Risk

VUSE is exposed to market risk, which is the risk of losses due to overall market declines. Specific risks associated with its holdings include company-specific risks and sector-specific risks.

Ideal Investor Profile

The ideal investor for VUSE is someone who seeks long-term capital appreciation and prioritizes values-based investing. These investors want their investments to align with their social and ethical beliefs.

Market Risk

VUSE is suitable for long-term investors who are comfortable with active management and the potential for higher volatility in exchange for potentially greater returns.

Vident Core U.S. Equity Fund (VUSE) is an actively managed ETF that seeks long-term capital appreciation through investments in U.S. equities with a focus on values-based investing. Its smaller size and actively managed portfolio offer a differentiated approach but also present higher risks and costs compared to passively managed ETFs. The ETF is suitable for long-term investors who prioritize social responsibility and are comfortable with the potential for increased volatility. The expense ratio of 0.49% is relatively high for the ETF market and the fund should be compared against the S&P 500 to determine if the active portfolio adds value.

Data Sources:

• Vident Investment Advisory Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

This analysis is based on publicly available information and is not financial advice. Past performance is not indicative of future results. Investment decisions should be made after consulting with a qualified financial advisor.